Section 39 Mortgage and Property Law of Lagos State

Section 39 of the Mortgage and Property Law of Lagos State 2010 is about Application of proceeds of sale. It provides as follows:

The money which is received by the mortgagee, arising from sale, after discharge of prior encumbrances t which the sale is not made subject, if any or after payment into court under his law of a sum to meet any prior encumbrances shall be held by him in trust to be applied by him, first, in payment of all cost, charges and expenses properly incurred by him as incident to the sale or any attempted sale, or otherwise and secondly in discharge of the mortgage money, interest and costs and other money, if any, due under the mortgage, and the residue of the
money do received shall be paid to the person entitled to the mortgaged property or authorized to give receipt for the proceeds of the sale.